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Sep 30, 2024

McGrath RentCorp Q3 2024 Earnings Report

McGrath RentCorp's Q3 2024 results were announced, featuring revenue growth and a significant net income contribution from a merger termination payment.

Key Takeaways

McGrath RentCorp reported a 10% increase in total revenues, reaching $266.8 million for Q3 2024. Net income from continuing operations was $149.3 million, or $6.08 per diluted share, which included a $103.5 million net income contribution from a merger termination payment. Excluding this payment, net income was $45.9 million, or $1.87 per diluted share.

Total revenues increased by 10% to $266.8 million, driven by higher rental operations and sales revenues.

Net income included a $103.5 million contribution from a merger termination payment.

Mobile Modular division was a highlight, with a 9% rental revenue growth.

Portable Storage and TRS-RenTelco experienced demand challenges, resulting in rental revenue decreases.

Total Revenue
$267M
Previous year: $244M
+9.5%
EPS
$1.87
Previous year: $1.65
+13.3%
Mobile Modular Utilization
77.1%
Previous year: 79.4%
-2.9%
TRS-RenTelco Utilization
57.3%
Adler Tanks Utilization
62.8%
Previous year: 59.4%
+5.7%
Gross Profit
$124M
Previous year: $112M
+11.2%
Cash and Equivalents
$4.06M
Previous year: $1.95M
+108.4%
Free Cash Flow
$171M
Previous year: -$1M
-17192.7%
Total Assets
$2.29B
Previous year: $2.14B
+7.0%

McGrath RentCorp

McGrath RentCorp

McGrath RentCorp Revenue by Segment

Forward Guidance

For the full year 2024, the company expects total revenue between $910 to $920 million, Adjusted EBITDA between $345 to $351 million, and gross rental equipment capital expenditures between $180 to $190 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income